Diem Association may launch stablecoin in 2021
Diem Association, formed by Facebook, may launch a pilot stablecoin this year.
Diem was formerly known as Libra and had long-term plans to develop its own digital currency under the patronage of Facebook. However, two years after its founding, the company lost most of its leaders and team members, after which it changed its name. And while the team has changed, plans for its own dollar-pegged stablecoin appear to remain in place.
The Diem has not yet officially announced that it is now working on its token, but anonymous sources close to the organization's leadership reported this. According to him, the project will focus on payments between users and the ability to purchase goods and services for Diem stablecoins in the future. The team is currently waiting for Swiss regulators to obtain a payment license.
In 2019, when Facebook announced its desire to integrate its own cryptocurrency, Libra, American regulators reacted very harshly. And people began to worry about a potential monopoly from the world's largest social network with almost 3 billion users worldwide.
Launch of the digital currency fell through in 2020, when strategic partners such as Mastercard and Visa turned away from the group developing Libra due to disagreements with regulators and authorities. But it seems that now the Diem has slightly tempered its ardor and managed to overcome the legal difficulties that it faced earlier.
As soon as the project gets the regulatory approval, the team will be ready to start experiments with a limited number of users to test the viability of their token, according to the whistleblower.